Effect of Loyalty Program on Customer Satisfaction and Customer Loyalty of Retail Store or Supermarket in Punturin, Valenzuela City

This study examined the influence of loyalty programs on customer satisfaction and loyalty within the retail grocery sector of Punturin, Valenzuela City. Utilizing a descriptive-correlational research design, data were gathered from 357 purposively selected loyalty cardholders. Statistical analyses, including Pearson correlation and multiple regression, were employed to determine how program components—such as point systems, rebates, and rewards—predict consumer behavior. The findings indicate that the loyalty program serves as a significant driver of both customer satisfaction and long-term loyalty. Demographic analysis revealed critical moderating effects: frequency of store visits significantly correlates with program effectiveness, marital status influences satisfaction levels, and income acts as a primary determinant of brand loyalty. Specifically, middle-to-low-income earners exhibited higher retention rates compared to high-income groups. Ultimately, the results suggest that well-structured reward systems not only enhance the shopping experience but also provide a sustainable competitive advantage through increased purchase frequency and customer advocacy. These insights offer retail managers a framework for developing targeted promotional strategies to optimize retention and organizational profitability.